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By Joel Anekwe
The Environmental Rights Action/Friends of the Earth Nigeria, ERA/FoEN, has advocated for the removal by the Federal Government of import tariffs and Value Added Tax (VAT), charged by the country on renewable energy products and components.
Making the call in Port Harcourt on yesterday, ERA noted that the removal will enable Nigeria grow to a major supplier of renewable energy in Africa, adding that over 70% countries of the continent were in short supply of energy.
Programme Manager of the environment campaign group, Mike Karikpo, while addressing journalists on the matter commended the Federal Government for already approving a zero import duty for machinery and equipment used in the power sector, urging it (FG) to extend better attention to renewable energy products.
Karikpo said: “We call on the Federal Government to immediately implement zero Value Added Tax policy on all renewable energy products and components to accelerate growth of the renewable energy sector.
“We acknowledge the fact that the federal government had approved a zero import duty for machinery and equipment used in the power sector, especially those locally produced.
“We also welcome the reduction in tariffs on items like automatic circuit breakers, switches, lamp-holders, electrical apparatus for switching or protection electricity circuitry from 20% to 10%.
“We however call on government to ensure zero VAT on products like, batteries, charge controllers, inverters and the implementation of the approved low tariffs on other renewable components as this would promote in-country assembly and production of renewable energy in Nigeria and would boost job creation for prospective investors in the sector.”
He further called for consistency in the applications of current VAT and approved import duties by the customs as the current inconsistent application of these makes the taxes and charges unpredictable and will certain discourage Investment in renewable energy.
“We have the manpower in renewable energy, but no policy environment. We are calling on the FG to invest money in renewable energy, the same way we did to generators.
“At this time Nigeria needs 40,000 megawatts installed electricity, but we are struggling with 5000 megawatts. It is part of our campaign to encourage the use of renewable energy sources,” he added.
He stressed that at the time when the whole world was fast moving away from fossil fuel as source of energy Nigeria could not afford to continue to depend on it or the country would be left financially stranded when fossil fuels which she currently depends on as her main source of income is totally depleted or becomes less attractive in the international market.
He challenged the government to develop the political will and not only provide the legal framework for but also begin investment in the renewal energy sector.
While acknowledging the huge financial investment requirement in the sector, Karikpo explained that it might look expensive in the immediate future but on the long run would be cheaper and more environment friendly.
